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Sharp to slash employee wages by 10 percent

September 12, 2012

Struggling OEM will double a previous five percent salary cut for management in a bid to save $180 million.

Printer manufacturer Sharp has announced that it will reduce employee salaries by as much as 10 percent, twice the stated salary cut for management as enacted in April 2012, and is currently in negotiations with unions regarding the plans.

The decision comes as the ailing OEM attempts to save approximately $180 million (€139 million) through the current fiscal year. Management staff were previously informed of a five percent salary cut, which has doubled to 10, while Sharp is also engaged in negotiations with labour unions to cut union workers’ salaries by as much as seven percent, up from a previous two percent.

The announcement come in the week of the OEM’s 100th anniversary and an announcement that it will be cutting 2,000 jobs, and Sharp also plans to make alterations to salary-related items including overtime pay and business trips.

Sharp recently received an additional ¥150 billion ($1.9 billion/€1.5 billion) from main creditors Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi UFJ, which is hoped to sustain the OEM through to the end of September.

The OEM has also had to reassure global dealers that it is not negotiating the sale of its businesses with an open letter from President Doug Albregts.

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